(1) A corporation may establish a procedure by which the beneficial owner of shares that are registered in the name of a nominee is recognized by the corporation as the shareholder. The extent of this recognition may be determined in the procedure.

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Terms Used In Utah Code 16-10a-723

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Shareholder: means :
              (34)(a)(i) the person in whose name a share is registered in the records of a corporation; or
              (34)(a)(ii) the beneficial owner of a share to the extent recognized pursuant to Section 16-10a-723. See Utah Code 16-10a-102
(2) The procedure described in Subsection (1) may set forth:

     (2)(a) the types of nominees to which it applies;
     (2)(b) the rights or privileges that the corporation recognizes in a beneficial owner, which may include rights or privileges other than voting;
     (2)(c) the manner in which the procedure may be used by the nominee;
     (2)(d) the information that shall be provided by the nominee when the procedure is used;
     (2)(e) the period for which the nominee’s use of the procedure is effective; and
     (2)(f) other aspects of the rights and duties created.